Why Is the Public Sector More Labor-Intensive? A Distortionary Tax Argument Government-run entities are often more labor-intensive than private companies, even with identical production technologies. This need not imply slack in the public sector, but may be a rational response to its wage tax advantage over private firms. A tax-favored treatment of public production precludes production effici...

Why Is the Public Sector More Labor-Intensive? A Distortionary Tax Argument Government-run entities are often more labor-intensive than private companies, even with identical production technologies. This need not imply slack in the public sector, but may be a rational response to its wage tax advantage over private firms. A tax-favored treatment of public production precludes production effici...

Can governments increase private savings by taxing savings up front instead of in retirement? Roth 401(k) contributions are not tax-deductible in the contribution year, but withdrawals in retirement are untaxed. The more common before-tax 401(k) contribution is tax-deductible in the contribution year, but both principal and investment earnings are taxed upon withdrawal. Using administrative dat...

As of 1 July 2013, i.e. with Croatia’s accession to the European Union, the number of Member States of the European Union rose to 28. The diversity of tax systems among the Member States causes interferences in cross-border activities of tax firms. That encourages transfer of income to countries with lower tax rates. The aim of this paper is to present the main points of view on the implication...

Using a direct estimate of income diversion for 156 firms from 1999 through 2004, we show that an increase in tax enforcement following the election of Vladimir Putin in 2000 is associated with a decrease in the appropriation of private rents by insiders in those firms investigated for tax evasion. We also find evidence consistent with a simultaneous spillover effect: the largest non-government...

The author describes the methodology for assessing the suitability of tax and legal environment for the development of private equity and venture capital industry, designed by the European Venture Capital Association (EVCA). She applies this method to assess the tax and legal environment in Croatia. The results reveal that, according to the total composite score, Croatia belongs to the group of...

The paper aims to highlight the importance of transfer pricing in the international economic environment, a topical subject, with a strong impact both on the affiliated companies and on the countries in which these companies operate. It is important to emphasize that, at present, the transfer price is an important element in the activity of companies around the world, considering the changing b...